According to Google and Yahoo, there are more than 4500 Web hosting businesses around the world. The Web hosting business is extremely competitive these days. There are many successful Web hosting companies today. If you do not wish to allocate funds or if you do not have the financial resources and/or the skills to administer your server and market your business, it is unbelievably difficult to succeed.

Marketing your Web hosting business is not as simple as many people think. Building a Web site or by simply entering some information into a search engine database's, won't help get you noticed and attract customers. Customers are far more difficult to attract than one would imagine, and because of this and several other reasons, many people can not afford to run a quality web hosting company. In the end, they sell their business.

Unfortunately, there are many hosts that get into financial trouble and have to leave the market. This not only applies to small startup hosts, but also to well-established Web hosting firms. If the investors are not happy with their return on investment or lose patience in recouping their investment, they may just cut their losses and move onto other business projects.

There are many reasons why someone would want to sell their Web hosting business. Selling your Web hosting business should be an option for an exit strategy. The idea should be to sell your hosting company because you want to and not because you have to.

Now, we'll answer some of the frequently asked questions:

1. What is a hosting business typically worth?
2. What common operational factors can increase the value of your business?

1. It is rather difficult to predict the precise value of your business. The size of your company, the number of clients and the revenue your company generates will determine it's value.

The value of a hosting business can be subjective, but some consistent rules of thumb apply. A typical way to evaluate your company's worth is by using a simple "multiple of revenue." formula (the monthly average revenue x the number of accounts x 12 months).  For example, a hosting business with 500 clients paying average $10.95 per month today will be worth around 500 x 10.95 x 12 =  $65,700. From that starting point, many factors can surface to positively or negatively impact the value of your business.

2. Factors that increase the value of your business:

• High profitability.
• Low churn rate.
• Diversity (breadth) of services.
• The sophistication level of your business Web Site.
• Accurate customers' and billing records.

Interested in selling your business?

ServerTune is currently expanding its customer base by purchasing Web hosting and design clientele from hosting operations and resellers around the world. Our technicians and staff will integrate your operation into ours. We'll take over all administrative and technical support issues from the immediate point of transfer, and migrate your entire enterprise to our network. We offer you the opportunity to trade risk for reward and place yourself in a profit payout position.

At the moment, we are mainly interested in companies with over 30k per year turnover. However, if your company is smaller, we will still consider you if your brand is strong.

If you are serious about selling your Web hosting business, please provide detailed information about the following:

Your Hosting company must not have/use Paysystems / Mypaysystems payment processor, and any illegal or pirated software.

• Company/Business name.
• A brief description on the hosting company including snail mail address and phone number.
• Domain name .
• URL to Web site.
• Total number of existing clients.
• Business must be, at least, 6 months old.
•  Number of dedicated/VPS server(s) and who is your host .
• Control Panel (s) currently used and/or leased.
• Hosting Plans offered and their fees.
• Client management system (eg Modernbill, WHMAP, Lpanel, WHMCS)
• Payment system (eg Paypal / credit cards)

Also, please include (in Excel spreadsheet, if possible)

• Breakdown of Clients onto their plans (include payment plan: monthly, 3 months, 6 months, or annually).
• Total current and average monthly revenue.
• Other revenue/income including dedicated and/or VPS servers and domain name registration .
• Any costs/expenses including domain names registration, dedicated/VPS server(s), Licenses, etc. 

Thank you